Old income tax regime: According to a poll by insurance aggregator Policybazaar, 37% of respondents supported the New Tax Regime and 63% supported the Old Tax Regime. It was discovered that taxpayers continue to favor the Old Regime because of its tax-saving advantages and compliance with the long-term savings instrument’s security.
The survey also reveals a change in gender dynamics, with 74% of women calculating their tax liability under both regimes, a slight increase over the 71% of men who did the same. 71% of respondents made their decisions based on careful calculations.
The study shows a change in the way people think about investing; 62% of respondents between the ages of 18 and 30 said they would prefer the Old Tax Regime because they were long-term investors.
According to the report, Tier 1 cities have the most financially savvy demographics, with 69% of respondents favoring the Old Income Tax Regime because they want to save money on taxes by making long-term investments. Financial awareness is also present in Tier 2 and Tier 3 cities, as evidenced by the deliberate adoption of the Old Income Tax Regime by 61% and 59% of respondents, respectively.
The Public Provident Fund (PPF) and life insurance are the most popular ways to save taxes, according to the report, with 39% and 34% of respondents selecting them, respectively.
Other tax-saving options that are preferred by 39% to 39% of all respondents are infrastructure bonds, education loans, ELSS, home loans, NPS, SSY, Tax Saver FD, donations and charities, SCSS, and NSC.
65 percent of respondents in southern India said they preferred the Old Income Tax Regime, compared to well over fifty percent in northern, western, and eastern India. A survey of 350 cities’ worth of taxable income bracket residents was undertaken.
Because their long-term investments were tax-free, about 46% of respondents preferred the previous income tax system. According to the survey, 49% of business people favored the new income tax regime, while 67% of salaried people continued to pay taxes under the previous system.
The new income tax system will take effect for the assessment year 2024–2025 in the financial year 2023–2024 as the default income tax system. When filing their income tax returns, those who choose to remain under the previous income tax regime will need to select this option.
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